China launches homegrown company to make large jets
Associated Press - May 11, 2008 12:35 AM ET
BEIJING (AP) - China has reportedly established a homegrown company to make large passenger jets - a step forward in the country's quest to become less dependent on Boeing and Airbus.
The official Xinhua News Agency says China Commercial Aircraft Co. was established in Shanghai with registered capital of $2.7 billion.
It says the central government and the Shanghai government are among the major shareholders, as are China's two main aircraft manufacturing and servicing companies, China Aviation Industry Corp. I and China Aviation Industry Corp. II. They were split off from state-owned China Aviation Industry Corp. in 1999.
Europe's Airbus has forecast that China's domestic airplane market will increase fivefold by 2026. Airbus and Chicago-based rival Boeing dominate the market for commercial airplanes carrying 100 or more people.
Xinhua said Commercial Aircraft Co. will be able to make planes with more than 150 seats.
General manager Jin Zhuanglong says it is too early to say when a Chinese-developed large jet might be taking off, as it will take a long time to develop homegrown talent and do research.
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